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AOL shopping itself to Yahoo, Microsoft

Posted Jul 16 2008, 01:06 PM by Kim Peterson
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The back-and-forth competitive drama between Microsoft and Yahoo has opened a perfect opportunity for Time Warner to once again shop its AOL unit. Time Warner is reportedly looking at either merging AOL with Yahoo (with Time Warner getting a minority stake) or selling it outright to Microsoft. Time Warner shares have risen more than 2% today to $14.26 on the news, with Yahoo shares up nearly 4% to $22.38 and Microsoft shares up nearly 3% to $26.90.

Time Warner has wanted to offload AOL for a while, but now Microsoft and Yahoo are scrambling for Plan B's in the aftermath of failed buyout talks. AOL has a growing ad network and an aggressive new strategy, and could be a decent acquisition for either company. The question is, where should it end up?

AOL is strong in display advertising, and it's bulking up its family of Web properties with a number of new sites. Yesterday brought the launch of a personal finance site called WalletPop and a photography site called Pixcetera. It's part of a new strategy to sell advertising: roll out lots of small, niche sites and let them grow or fail on their own. 

Silicon Alley Insider argues that AOL is a better fit with Yahoo, since both companies' content sites and e-mail/IM systems complement each other. Yahoo's display advertising would get a boost as well. But Microsoft will offer more money, SAI says.

Kara Swisher suggests Microsoft could make good use of AOL's ad capabilities and Web properties.

paidContent says that Yahoo could appease angry shareholders with an AOL merger and show that the company can grow without Microsoft. On the other hand, Microsoft could use AOL to gain more traffic and become stronger in advertising.

Search Engine Land comes out of left field with this idea: Microsoft could buy AOL and then buy Yahoo's search business.

Disclosures: I don't own shares of any companies mentioned in this post. And while Microsoft owns this blog, Microsoft does not control, censor or otherwise have any editorial influence over what I write.

Comments

 

I'd be more interested to see Yahoo with Time Warner.  That's a great match.  I also see better improvement for TIme Warner over it.  Unloading AOL would be fine, but to merge with Yahoo and fade AOL away would certainly allow it's internet business to grow and expand.  

The smart move for Time Warner would be to place it's foot BACK where it should have been before it purchased AOL.

You mean put its FOOT back on the throats of free speech and liberty?

Big business is trying to complete its strangle hold on the media. Once they own the internet all you'll get is the party line.

These avarice driven gangsters are commiting crimes against the world and its populace.

Of course, you won't read much about that in the media will you?

What I do not get is. Time Warner has Cable and DSL . Why not just put AOL with the DSL and set it all up as a deal. But they have Roadrunner. But they own AOL.

Hello, Hello! Does anyone get this?

Not me!

What doesn't everyone get. Microsoft doesn't need yahoo or aol. It needs Sprint. The future isn't online its on the phone. You cn run but you cannot hide--RIMM and Apple.

The future is with both internet search engines and cell phones with cell phones at an advantage. The search engines are still needed as the cell phones are accessing the internet. Therefore, it is my opininon that Microsoft should buy Sprint and Verizon Wireless and form one wireless company and then buy both AOL and Yahoo.

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    AT-T-mobile.com will combine forces to further Yahoo's net shares of search engine engine marketing.  Amazon, will quickly be promoted in banking and digital stock advances, creating igoogledesktop revenue for ebay to  pay pals.  Public Desktop Presspass Authority will electronically document, file, secure and report, 90% of all transactions... including, payments, fees and case study findings that will  quickly develop 100,000 jobs and 127 unique organizations of awarded and rewarded business within current financial market.   Wikipedia, iphone-apps and TellAvision will offer a Secure https adsense promotional encyclopedia type recovery package... strictly for the lost market of past investments oppurtunities overlooked or refused by the Big Bussinesses.  The cost 1 trillion dollars alloted, 350 billion immediately pumped back into the economy... entirelly digitally documented by a choice bank.  250 billiion will be used to fund 100,000 immediate job producing offices.  Assuring 500,000 more jobs by years end.  No parachute drops of more than $ 500,000.00, with the exception of extraordinary Presidential pardons.  Approved and closely regarded in consideration of a unified government of past and current.  Purposed, to look ahead to challenges...most iportantly... in agreement to do so.  We shall all live to see the success of this appointed plan if we choose.   My Service Agreement

  iCANNdomainbank.com will soon offer digital domain banking stocks of equal and proportioned investment trade options through earned xbox-cashback market shares.  Each alotted the current lower-end stock average.   Blogger and igooglebanking, will use aol to fund and promote MobileMe trade and SecureSMS certified email and business only insurance transactions, monitored by rotation  in what will become known as yhoo-msft-goog.com

   AT-T-mobile.com will combine forces to further Yahoo's net shares of search engine engine marketing.  Amazon, will quickly be promoted in banking and digital stock advances, creating igoogledesktop revenue for ebay to  pay pals.  Public Desktop Presspass Authority will electronically document, file, secure and report, 90% of all transactions... including, payments, fees and case study findings that will  quickly develop 100,000 jobs and 127 unique organizations of awarded and rewarded business within current financial market.   Wikipedia, iphone-apps and TellAvision will offer a Secure https adsense promotional encyclopedia type recovery package... strictly for the lost market of past investments oppurtunities overlooked or refused by the Big Bussinesses.  The cost 1 trillion dollars alloted, 350 billion immediately pumped back into the economy... entirelly digitally documented by a choice bank.  250 billiion will be used to fund 100,000 immediate job producing offices.  Assuring 500,000 more jobs by years end.  No parachute drops of more than $ 500,000.00, with the exception of extraordinary Presidential pardons.  Approved and closely regarded in consideration of a unified government of past and current.  Purposed, to look ahead to challenges...most iportantly... in agreement to do so.  We shall all live to see the success of this appointed plan if we choose.   My Service Agreement

iGoogleBanking YahooMicrosoft Money. (Posted 02.05.09 7:39 PM

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